The managers of a multi product business want to achieve a steady growth In sales. To what extent will an understanding of product life cycle help them make effective marketing decisions?

intro (define product life cycle) - The product life cycle describes the stages a product goes through from when it was first thought of until it is finally removed from the market. Some products don't reach this stage, and instead extend their life cycle, either continuing to grow or others rising and falling. point (why product life cycle will be useful with evaluation) - The product life cycle will be useful for managers of a multi product business to help make effective marketing decisions as it allows them to balance their product portfolio and ensure they have products at different stages of the cycle. Consequently, it will help them realise products in decline and thus the need for investment in to new products. This links in to the use of the marketing mix as for example penetration pricing will be needed for new products in the introduction stage. In evaluation however, the extent of this usefulness depends on the market they operate in. If their products are in different paced markets then it will be more different to track where each products life cycle is at. This is backed up by how external factors outside of the company's control, in dynamic markets, will affect the managers marketing decisions. point (why product life cycle won't be useful with evaluation) - On the other hand, an understanding of the marketing mix will not help the managers make effective marketing decisions as this type of company (multi-product) will release many products which are then withdrawn due to unsuccessful launches given the competitiveness of the market. Thus, these products won't go through all four stages of the cycle. Some products that do make it past the introduction stage may be in decline and so a setback for the business in the maturity stage of their cycle. In evaluation however, a business's understanding of the product life cycle may prompt them to launch extension strategies for this type of product which could disrupt markets, for example through product modification. These strategies can be planned in accordance with the products life cycle to achieve steady sales growth. conclusion (overall judgement with evaluation) - Overall, having an understanding of the marketing mix in a marketing context will help the managers make effective marketing decisions regarding targeting, positioning and the marketing mix in relation to the marketing objective. However, it's usefulness will depend on the accuracy of sales forecasting. To what extent this understanding will be effective depends on the type of market the multi-product business operates in; useful in a traditional stable market, however not so useful in a dynamic market. This is due to external factors limiting the usefulness of the product life cycle, where sudden changes will limit its reliability. Therefore, more effective marketing decisions may be made if the managers used their understanding of the product life cycle in conjunction with the Boston Matrix. This is due to the business being multi product and so managers need an overview of how different products are performing.